Real Estate and Litigation Solicitors - CG Naylor LLP

RTM for Multiple Blocks

Leaseholders can take control over the management of their building, without proving fault on the part of the landlord, by setting up a right to manage (RTM) company.

However, right to manage cases for large blocks can be rather more complex.

A couple of years ago there was intense debate about whether a single RTM company could gain management functions for multiple buildings on the same estate.

The Leasehold Valuation Tribunal – since replaced by the First-tier Tribunal (Property Chamber) – ruled that one RTM company could not claim RTM over more than one building.

By contrast, the Upper Tribunal (Lands Chamber) then decided that one RTM company could manage more than one building, provided all the qualifying requirements were met in relation to each separate building i.e. that the legal conditions were fulfilled.

The Court of Appeal decided in favour of the landlords, however, who argued that there should be one RTM company for every block (not one company for multiple blocks).

This means leaseholders need to set up a separate RTM company for every building, serving invitation notices on the tenants of each building and serving a claim notice in respect of each building. Each building must qualify in its own right, with a sufficient number of qualifying tenants joining the RTM company before the notices are served.

You can learn more about the right to manage here.